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Gazprom May Halt Gas Supplies to Ukraine

A spokesman of Gazprom said that the company may halt natural gas supplies to Ukraine because the country failed to pay off its $2 bln debt

Gazprom May Halt Gas Supplies to Ukraine

Sergei Kupriyanov, the company's spokesman said Gazprom was taking action after learning that Ukraine did not plan to pay off its gas debt before the end of the year. This was the reason why Gazprom announced that it won't sign another contract with Ukraine starting from January 1.

Kupriyanov said Gazprom would inform its European partners on Thursday of possible problems with natural gas supplies via Ukraine over the country's outstanding debt.

"The current situation will be outlined and the inherent risks assessed in a letter that will be sent to partner companies today on behalf of the chief executive," Kupriyanov told a news conference.

Ukraine's national oil and gas company denied refusing to pay off the debt this year.

"We planned [to pay back the debt], and we are trying to find out what has happened," Naftogaz press secretary Valentyn Zemlyanskiy said.

Ukraine's president, Viktor Yushchenko, said earlier on Thursday the country had already paid $800 million of its debt to Russia for natural gas supplies, and would pay another $200 million soon.

The European Commission expressed concern on Thursday over the lack of progress in gas talks between Russia and Ukraine, and urged the parties to settle the gas debt issue.

Author: Ksenia Kochneva


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